Aysan, Ahmet Faruk and Ertek, Gurdal and Ozturk, Secil (2009): Assessing the adverse effects of interbank funds on bank efficiency through using semiparametric and nonparametric methods. Published in: Global Trends in the Efficiency and Risk Management of Financial Services , Vol. Nova S, (2012): pp. 41-62.
Download (794kB) | Preview
This paper investigates the relationship between interbank funds and efficiencies for the commercial banks operating in Turkey between 2001 and 2006. Data Envelopment Analysis (DEA) is executed to find the efficiency scores of the banks for each year, and fixed effects panel data regression is carried out, with the efficiency scores being the response variable. It is observed that interbank funds (ratio) has negative effects on bank efficiency, while bank capitalization and loan ratio have positive, and profitability has insignificant effects. Our study serves as novel evidence that interbank funds can have adverse effects in an emerging market.
|Item Type:||MPRA Paper|
|Original Title:||Assessing the adverse effects of interbank funds on bank efficiency through using semiparametric and nonparametric methods|
|Keywords:||Turkish Banking Sector; Interbank Funds; Data Envelopment Analysis; Efficiency; Panel Regression; Cluster Analysis, Two Step Procedure|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General
G - Financial Economics > G2 - Financial Institutions and Services
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General
D - Microeconomics > D4 - Market Structure and Pricing > D40 - General
A - General Economics and Teaching > A1 - General Economics > A10 - General
|Depositing User:||Ahmet Faruk Aysan|
|Date Deposited:||15. Apr 2012 14:04|
|Last Modified:||13. Feb 2013 02:10|
Abbasoglu, O.F., Aysan, A.F., Gunes, A., 2007. Concentration, competition, efficiency and profitability of the Turkish banking sector in the post-crises period. The Banks and Bank Systems 2, 106-115.
Adenso-Diaz, B., Gascon, F., 1997. Linking and weighting efficiency estimates with stock performance in banking firms. The Wharton Financial Institutions Center.
Akin, G. G., Aysan, A. F., Kara, G. I. and Yıldıran, L., 2009, Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis, Turkish Economy in the Post-Crisis Era: the New Phase of Neo-Liberal Restructuring and Integration to the Global Economy, Z. Onis, and F. Senses (eds.) Routledge, pp. 73-100.
Al, H., Aysan. A.F., 2006. Assessing the preconditions in establishing an independent regulatory and supervisory agency in globalized financial markets: The case of Turkey. International Journal of Applied Business and Economic Research 4, 125–146.
Aleskerov, F., Belousova, V., Serdyuk, M., Solodkov, V., 2008. Dynamic analysis of the behavioural patterns of the largest commercial banks in the Russian federation. Working Paper No. 12/2008, International Centre For Economic Research, State University – Higher School of Economics, Moscow, Russia.
Alpay, S., Hassan, M.K., 2006. A comparative efficiency analysis of interest free financial institutions and conventional banks: A case study on Turkey. ERF 13th Annual Conference.
Arestis, P., Chortareas, G., Desli, E., 2006. Technical efficiency and financial deepening in the non-OECD economies. International Review of Applied Economics 20, 353–373.
Arestis, P., Chortareas, G., Desli, E., 2006. Financial development and productive efficiency in OECD countries: An explanatory analysis. The Manchester School 74, 417–440.
Aysan, A.F., Ceyhan, S.P., 2008-a. What determines the banking sector performance in globalized financial markets? The case of Turkey. Physica A: Statistical Mechanics and its Applications 387, 1593-1602.
Aysan, A.F., Ceyhan, S.P., 2008-b. Globalization of Turkey's banking sector: Determinants of foreign bank penetration in Turkey. The International Research Journal of Finance and Economics 15, 90-102.
Aysan, A.F., Ceyhan, S.P. 2008-c. Structural change and efficiency of banking in Turkey: Does the ownership matter?. Topics in Middle Eastern and North African Economies, MEEA Online Journal 10.
Aysan, A.F., Ceyhan, S.P., 2007. Why do foreign banks invest in Turkey?. Asian and African Journal of Economics and Econometrics 7, 65-80.
Banker, R.D., Charnes, A., Cooper, W.W., 1984. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science 30, 1078–1092.
Berger, A.N., Humphrey, D.B., 1997. Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research 98, 175–212.
Brown, J.A., Glennon, D., 2000. Cost structures of banks grouped by strategic conduct. Applied Economics 32, 1591-1605.
Černohorská, L., Černohorský, J. Teplý, P. 2007. The banking stability in the Czech Republic based on discriminant and cluster analysis. Anadolu University Journal of Social Sciences 7, 85-96.
Clark, J.A., Siems, T.F. 2002. X-efficiency in banking: looking beyond the balance sheet. Journal of Money, Credit and Banking 34, 987–1013.
Cooper, W.W., Seiford, L.M., Tone, K., 2006. Introduction to Data Envelopment Analysis and Its Uses. Springer Science Business Media.
Fethi, M., Pasiouras, F., 2010. Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey. European Journal of Operational Research 204, 189-198.
Hałaj, G., Żochowski, D., 2006. Strategic groups in Polish banking sector and financial stability. Working paper. Accessed on November 2009, retrievable from http://mpra.ub.uni-muenchen.de/326/
Han, J., Kamber, M.. Pei, J., 2005. Data Mining: Concepts and Techniques. Morgan Kaufmann.
Hauner, D., 2005. Explaining efficiency differences among large German and Austrian banks. Applied Economics 37, 969–980.
Ho, C-T., Wu, Y.S., 2006. Benchmarking performance indicators for banks. Benchmarking: An International Journal 13, 1463-5771.
Isık, I., Hassan, M.K., 2002. Technical, scale and allocative efficiencies of Turkish banking industry. Journal of Banking and Finance 26, 719–766.
Isık, I., Hassan, M.K., 2003-a. Financial deregulation and total factor productivity change: An empirical study of Turkish commercial banks. Journal of Banking and Finance 26, 719–766.
Isık, I., Hassan, M.K., 2003-b. Financial disruption and bank productivity: The 1994 experience of Turkish banks. The Quarterly Review of Economics and Finance 43, 291–320.
Isik, I., 2008. Productivity, technology and efficiency of de novo banks: A counter evidence from Turkey. Journal of Multinational Financial Management 18, 427–442.
Li, J., 2008. Asymmetric interactions between foreign and domestic banks: Effects on market entry. Strategic Management Journal 29, 873–893.
Lin, L-J., 2006. Identifying strategic groups with the data envelopment analysis method: Taking Taiwan banking industry as an example. M.Sc. Thesis, Graduate School of Industrial Engineering and Management. Accessed on November 2009, retrievable from http://ethesys.isu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0820107-080851
Marín, S., Gómez, J., Gómez, J.C., 2008. Eficiencia técnica en el sistema bancario español. Dimensión y rentabilidad. El Trimestre Económico 75, 1017-1042.
McKinsey Global Institute, 2003. “Overview” (Section 1) and “Retail Banking” (Chapter 3), in Turkey: Making the Productivity and Growth Breakthrough, MGI Report, February 2003. Accessed on November 2009, retrievable from http://www.mckinsey.com/knowledge/mgi/turkey/perspective.asp
Ozatay, F., Sak, G., 2002. The 2000–2001 Financial crisis in Turkey. Brookings Trade Forum 2002. Currency Crises Washington D.C.
Ozkan-Gunay, E.N., Tektas, A., 2006. Efficiency analysis of the Turkish banking sector in precrisis and crisis period: A DEA approach. Contemporary Economic Policy 24, 418–431.
Prior, D., Surroca, J., 2007. Cognitive strategic groups and long-run efficiency evaluation: The case of spanish savings banks. Working Paper 07-10, Departamento de Economía de la Empresa, Universidad Carlos III de Madrid, Spain.
Seçme, N.Y., Bayrakdaroğlu, A., Kahraman, C., 2009. Fuzzy performance evaluation in Turkish banking sector using analytic hierarchy process and TOPSIS. Expert Systems with Applications 36, 11699–11709.
Stavárek, D., 2003. Banking efficiency in Visegrad countries before joining the European Union. Workshop on Efficiency of Financial Institutions and European Integration, Technical University Lisbon, Portugal.
Steinherr, A., Tukel, A., Ucer, M., 2004. The Turkish banking sector: Challenges and outlook in transition to EU membership. Bruges European Economic Policy Briefings.
Turhan, I., 2008. Why did it work this time? A comparative analysis of transformation of Turkish economy after 2002. Asian African Economics and Econometrics 8, 255-280.